Apple Stock Drops Amid Weak iPhone 16 Demand Analysis

Apple’s stock took a noticeable dip after analysts reported less-than-anticipated demand for the newly released iPhone 16. Market experts highlighted a 12% decline in sales compared to the first weekend sales of its predecessor, the iPhone 15. TF Securities analyst, Ming-Chi Kuo, emphasized in a note that the major selling feature of the new iPhone model, dubbed Apple Intelligence, which was a highlight during Apple’s annual event, won’t be available to users until its beta release next month.

Further insights from analysts at Bank of America and JPMorgan suggest that the extended shipping times of the iPhone Pro models might reflect lower demand compared to last year’s performance. According to Barclays, pre-order figures from key e-commerce platforms in China revealed a drop in total units ordered year-over-year, especially for the Pro models, indicating a downward shift by double digits.

Apple’s recent event unveiled a slew of new products, including the iPhone 16, at its Cupertino headquarters. While pre-orders initiated last Friday, the delay in the availability of Apple Intelligence could be a contributing factor to slower sales. In China, where competition remains fierce, the rollout for the Apple Intelligence features won’t occur until 2025, which might be dampening early enthusiasm.

Barclays analysts also observed that Apple had to offer significant discounts for the iPhone 15 in China to drive sales. These market dynamics, combined with weak macroeconomic conditions, continue to weigh heavily on iPhone demand in the region. Meanwhile, JPMorgan noted that initial delivery lead times indicate that demand for base models of the iPhone 16 mirrors that of the iPhone 15 during its first week, but the Pro models show slightly softer demand.

Analysis from BofA suggests that while the ship dates for both the iPhone 16 Pro and Pro Max models are extended, the delays are not as pronounced as last year during a similar timeframe. The extended ship dates, while potentially illustrating demand, could also be impacted by factors like supply constraints and pricing strategies. Apple has already adjusted iPhone 16 prices in certain markets, such as Australia and India, in response to these complexities.

The premium iPhone 16 Pro and Pro Max, priced at $999 and $1,199 respectively, boast superior technology, with Apple claiming these models have the “thinnest borders on any Apple product” and the best displays yet. The Pro Max version promises the longest battery life in the iPhone series, though specifics weren’t disclosed at the event.

These insights, including contributions from CNBC reporter Michael Bloom, offer a glimpse into the challenges Apple faces amidst competitive and economic pressures, as well as the fluctuating consumer demand for its flagship products.